E3-7 Determining Accounting Equation Effects and Net Income [LO 3-2, LO 3-3]

The following transactions occurred during a recent year:

a.	Paid wages of $1,100 for the current period (example).
b.	Borrowed $5,500 cash from local bank using a short-term note.
c.	Purchased $2,200 of equipment on credit.
d.	Earned $440 of sales revenue, collected cash.
e.	Received $880 of utilities services, on credit.
f.	Earned $1,870 of service revenue, on credit.
g.	Paid $330 cash on account to a supplier.
h.	Incurred $75 of travel expenses, paid cash.
i.	Earned $440 of service revenue, collected half in cash, balance on credit.
j.	Collected $110 cash from customers on account.
k.	Incurred $320 of advertising costs, paid half in cash, balance on credit.

Required:

1.	For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and ? for decrease) of each transaction under the accrual basis. (Enter all amounts as positive values.)

Transaction

Assets

=

Liabilities

+

Stockholders